News Briefs

USDA Announces 2023 Peanut Loan Rates

U.S. Department of Agriculture’s Commodity Credit Corporation recently announced 2023-crop loan rates for four types of peanuts. The rates take effect Aug. 1, 2023, the beginning of the peanut crop year.

Eligible producers can obtain peanut loans through their local Farm Service Agency county offices or alternative delivery partners, such as Designated Marketing Associations and Cooperative Marketing Associations. These loans provide producers with interim financing on their production and facilitate the orderly distribution of loan-eligible peanuts throughout the year.

The 2018 Farm Bill established the national loan rate for peanuts at $355 per ton. CCC calculated the price support levels for each peanut type using the same method as last year. The 2023 Crop Peanut Loan Rate was calculated using the national loan rate and fiveyear average quality factors, along with a three-year simple average weighted production. For an average-grade ton of 2023-crop peanuts, loan levels by type are:

■ Runner - $354.41 per ton

■ Spanish - $344.27 per ton

■ Valencia - 359.76 per ton

■ Virginia - $359.76 per ton

CCC applies premiums and discounts for quality factors to compute the loan value for an individual ton of peanuts. The actual loan level depends on the percentage of various sizes of kernels in each ton. CCC uses the percentage of sound mature kernels (SMK) and sound splits to compute the basic loan value of the load. SMKs are whole kernels that pass over the testing screen officially designated for each type of peanut. Sound splits are whole kernels split into two pieces. Excess sound splits receive discounts. There are discounts for other kernels, damaged kernels and foreign materials.

An additional discount occurs for loose shell kernels. Other quality discounts also may apply.

China Less Dependent On U.S. Ag Export Market

A recent study by the Peterson Institute for International Economics concludes that while the United States is growing more dependent on China as an agricultural export market, China is becoming less dependent on the United States for its agricultural goods. China is currently the United States’ third largest export market for peanuts, although the market is primarily for crushing.

According to the 2009 Peterson report, 27% of China’s agricultural imports came from the United States. In 2022, that number was only 18%. In 2009, 13% of U.S. agricultural exports went to China; but in 2022, 19% of total U.S. agricultural exports went to China. Almost 50% of U.S. agricultural exports to China are soybeans, and those exports are increasing in terms of dollars and tonnage. However, a range of other U.S. agricultural products are seeing a decline in shipments, including for the first three months of 2023.

The American Peanut Council recently organized an educational seminar and networking event for Chinese delegates and U.S. exporters prior to the International Peanut Forum in Portugal.

This represented the first in-person meeting between the U.S. industry and the Chinese trade since 2019.

In total, more than 30 people joined the event, with 14 representatives from China. During the seminar, the National Peanut Board’s Bob Parker provided an overview of the U.S. peanut industry and Nan Xu from Qingdao Foodlink Co. gave an update on Chinese production and market conditions.

China was the U.S. peanut industry’s third-largest export market in 2022, with shipments totaling 81,921 MT valued at $78 million.

In Brief

• USDA announces 2023 peanut loan rates e ective Aug. 1.

• China less dependent on U.S. ag exports, while U.S. is more dependent on China.

• Growers conference: “Building On Our Strengths.

• International forum: Peanuts are essential global food.

• Alabama ranks No. 2 in peanut production.

• Unified export strategy identifies target markets, sets goals.

• In Memoriam: Walt Mozingo

2023 Peanut Growers Conference

The 24th Annual Southern Peanut Growers Conference is July 27-29, 2023, at Sandestin Golf and Beach Resort in Miramar Beach, Florida. Hosted by Georgia Peanut Commission and Grower Associations in Florida, Alabama and Mississippi, the threeday event covers legislation, production marketing and promotion plus a ladies program and golf tournament. The theme this year is “Building on our Strengths.” Room reservations at Sandestin Golf and Beach Resort can be made on line at www.Sandestin.com or by calling 1-800-320-8115.

During Saturday’s general session, the keynote speaker is U.S. Rep. Austin Scott, (R-GA), vice chairman of the House Committee on Agriculture, Nutrition and Forestry.

Friday’s opening session will feature U.S. Department of Agriculture’s National Peanut Research Lab director Marshall Lamb and University of Georgia peanut breeder Nino Brown talking about the future of non-food uses of peanuts. The mid-morning ses-